Suppose the following orders are received by an exchange for Cisco​ stock:
•
Limit​ Order: Buy
200
shares at $25.10
•
Limit​ Order: Sell
200
shares at $25.80
•
Limit​ Order: Sell
100
shares at $25.60
•
Limit​ Order: Buy
100
shares at $25.35
a. What are the best bid and ask prices for Cisco​ stock?
b. What is the current​ bid-ask spread for Cisco​ stock?
c. Suppose a market order arrives to buy
200
shares of Cisco. What average price will the buyer​ pay?
d. After the market order in
​(c​)
​clears, what are the new best bid and ask​ prices, and what is the new​ bid-ask spread for​ Cisco?